ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to APPROVE the Outline of Various COVID-19 RECOVERY PROGRAMS for City of Peoria Businesses and Individuals.
Body
BACKGROUND:
As communicated to the City Council on April 14, 2020, the City will have approximately $2.3 million in Community Development Block Grant (CDBG) and Emergency Solution Grant (ESG) funds available to be committed to the community recovery effort.
The purpose of this communication is to request that the Council approve the broad outline of the recommended use of these funds. With this approval, City staff will be able to start the formal review and approval process with HUD. The following schedule provides an overview of the process if the Council approves this request this evening.
1. April 28 - draft outline of programs approved by Council
2. April 30 - open 5-day public comment period
3. May 1 - hold public hearing
4. May 2 - close public comment period
5. May 12 - amended HUD Annual Plan to Council for approval
6. May 13 - amended annual plan to HUD for review and approval
7. May ?? / June ?? - approval by HUD
8. May ?? / June ?? - business and household applications lottery opened for 5 days
9. May ?? / June ?? - RFP released for individual and homeless services
10. May ?? / June ?? - review of business and household applications
11. May ?? / June ?? - review of RFP applications for individual and homeless services (award approval will be needed from Council)
12. May ?? / June ?? - agreements signed, funds issued to business and household program awardees, and with RFP awardees
Business Assistance Program (~$1 million (CDBG) in funding recommended):
To be eligible, businesses must meet the following criteria:
• Be located within the corporate boundaries of the City of Peoria
• Have 1 to 50 total employees
• Be operational as of January 1, 2019
• Show a demonstrated loss of revenue due to COVID-19
• Income qualify via one of three methods:
o Be located in and serve a qualified low-income area
o Have 51% of employees be at or below 80% AMI
o If only one employee, the business owner must be at or below 80% AMI
Program Details:
• The program would provide up to three months of assistance for specific fixed operating expenses with a maximum grant of $15,000 per business; $7,500 for businesses with 5 of fewer employees.
• Fixed operating expenses such as rent/mortgage, property taxes, utility payments, internet service, garbage service, insurance, and other debt service that is fixed.
• Payment is primarily reimbursement with limited option of pre-payment for a fixed cost
• Currently operating businesses must commit to retain permanent positions from the point of assistance and for at least 30 days after the final grant payment
• Currently closed businesses must commit to reopening by October 1, 2020 and re-employing all permanent positions that were in place as of January 1, 2020
Household Assistance Program (~$300,000 (CDBG) in funding recommended):
To be eligible, households must meet the following criteria:
• Be located within the corporate boundaries of the City of Peoria
• Total household income must be below 80% of area median income (AMI)
• Household must show a negative financial impact related to COVID-19
Program details:
• Up to $5,000 in assistance over a three (3) month period for fixed costs
• Fixed expenses such as rent/mortgage, property taxes, utility payments, internet service, garbage service, insurance, etc.
• Payment is primarily reimbursement with limited option of pre-payment for a fixed cost
Individual & Community Assistance Program (~$300,000 (CDBG) in funding recommended):
This program would provide funds to community partners in order to provide job training, domestic abuse assistance, mental health counseling, and health services to individuals who have been negatively impacted by COVID-19. The program would also provide broader community based services like food pantries, summer meals, meals on wheels, etc. to COVID-19 impacted persons and neighborhoods.
The awarding of these funds would be made through a RFP process coordinated by the CDBG Public Service Commission (previously the Human Resources Commission). Providers and end-users will need to meet all applicable CDBG regulations.
Homeless Assistance Program (~$535,321 (ESG) in funding recommended):
This program would provide assistance to individuals experiencing homelessness and near homelessness caused or aggravated by COVID-19.
The awarding of these funds would be made through a RFP process coordinated with the local Continuum of Care (CoC). Providers and end-users will need to meet all applicable ESG regulations.
FINANCIAL IMPACT: The program will be reallocating the following funds:
|
Project |
Year of Funding |
Amount |
Notes |
|
Health Department Partnership |
Various |
$11,801.34 |
Remaining funds from rehab program |
|
Public Service |
2019 |
$7,008.00 |
Unspent 2019 Funds |
|
Sidewalks |
2018 |
$20,784.73 |
Project Under Budget |
|
Public Improvements |
2018 |
$50,000.00 |
Infrastructure |
|
Competitive Grant |
2018 |
$250,000.00 |
East Bluff - NOFA |
|
Competitive Grant |
2019 |
$350,000.00 |
South Village - NOFA |
|
CDBG - COVID-19 |
COVID Funds |
$1,087,562 |
CDBG-CV |
|
ESG - COVID-19 |
COVID funds |
$535,321 |
ESG-CV |
|
|
TOTAL |
$2,312,477.07 |
|
Funding will be available after required annual action plans submitted to and approved by HUD.
NOTE: The City is permitted to charge reasonable and customary administrative costs for these programs against the grant amount. As such, there will be no additional burden on the City general fund for the management of these federally funded programs.
NEIGHBORHOOD CONCERNS: The amending of prior year plans will require a public comment period that will allow for neighborhood concerns.
IMPACT IF APPROVED: City staff will move forward to amend annual action plans and set a schedule for application release.
IMPACT IF DENIED: City staff will not move forward with this program at this time.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: All businesses will be required to obtain and EEO number prior to receiving grant funds.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
2. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Have an efficient government.
3. Keep taxes and fees competitive.
DEPARTMENT: Community Development